In 1973 Black and Scholes published their seminal paper "The pricing of
options and corporate liabilities". The same year, the first specialist
exchange for trade in option contracts was opened. Since that time the
market for derivative securities has grown into a multi-trillion dollar
industry. This talk will provide an introduction to the Black-Scholes
model, and as time permits, discuss some of its shortcomings and the
potential improvements that have been suggested.
R E F R E S H M E N T S
4:00 To 4:25 PM
Kenneth W. Anderson
Memorial Reading Room
